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Add a Subcontractor SOV to a Commitment

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Objective

To add a Subcontractor Schedule of Values (SSOV) to a purchase order or subcontract.  

Background

In Procore, the 'Subcontractor SOV' tab is enabled on the Commitments tool by default. This tab provides your downstream contractors with a way to provide a detailed breakdown of specific work items on a commitment. This breakdown is entered by your contractors on a separate tab—to ensure the committed amounts on each line item on the subcontract's general 'Schedule of Values' tab remains consistent with the approved agreement. 

Example

Let's assume you are a general contractor and have a subcontract with 'ABC Concrete'. Before your company will approve payment for work items on that subcontract, you want the subcontractor to provide a line item breakdown of each cost code/cost type combination to describe their costs in more detail.

To do this, you can have Procore send an email notification to the designated 'Invoice Contact' on the commitment. This email asks their company to complete the  Subcontractor SOV.  After the subcontractor adds their detailed line item breakdown to demonstrate their labor costs, materials, or other costs associated with the work items, they can then submit the completed data entry back for your review. 

Things to Consider

  • Required User Permissions:
    • To add a line item to the Subcontractor SOV tab of any contract, 'Admin' level permissions on the project's Commitments tool. 
    • To add a line item to the Subcontractor SOV tab of a specific contract, 'Read Only' level permissions or higher if the user is also the designated invoice contact on the purchase order or subcontract. To learn more, see What is an invoice contact?
    • To add a line item to the Subcontractor SOV tab when a contract is not marked 'Private,' 'Read Only' or 'Standard' level permissions on the project's Commitments tool with the 'Create Purchase Order' granular permission and/or 'Create Subcontract' granular permission enabled on your permissions template.
    • To add a line item to the Subcontractor SOV tab when a contract is marked 'Private,' 'Standard' level permissions on the project's Commitments tool and either added as an 'Invoice Contact' or added as member 'Private' drop-down list with the 'Allow Users to See SOV Items' check box enabled on the purchase order or subcontract. For details, see Create a Purchase Order or Create a Subcontract.
  • Limitations:
  • Additional Information:
    • You must add line items to the Subcontractor SOV before you create subcontractor invoices for the purchase order or subcontract.
  • For companies using the ERP Integrations tool:

Prerequisites

Steps

Create a Purchase Order or Subcontract

Complete the steps in Create a Purchase Order or Create a Subcontract. Then continue by updating the SOV as described in the next step.

Update the Schedule of Values (SOV)

  1. Navigate to the project's Commitments tool.
  2. Click the Summary or Detailed tab. 
  3. Locate the purchase order or subcontract in the list. Then click Edit. 
  4. Complete the data entry in the General tab.  
     Important

    To update the Schedule of Values, a user must be designated as an invoice contact. See Add Invoice Contacts to a Purchase Order or Subcontract

  5. Under Schedule of Values, add line items by clicking the click here to add link.
    These are the line items that your subcontractor will break down in to more detail on the Subcontractor SOV.
  6. Add all related line items:
    • Change Event Line Item. If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
    • Prime Contract Line Item. If you do not have change events enabled, select the related line item from your Prime Contract. If the item is not accounted for in the Prime Contract, select the "Non Budgeted" option.
    • Sub Jobs. Any sub jobs on the project that you have synced will appear in this drop-down. All cost codes related to the sub jobs will appear in the following field. If your company is using the Procore + ERP Integrations tool, see Which integrated ERP systems support the 'Sub Job' concept.
    • Cost Code. Select the appropriate cost code for the item. For example, 02-200 - Earthwork.
    • Description. Enter a brief description about the line item.
    • Cost Type. Select the appropriate item cost type from the drop-down list. For example, Labor or Subcontractor.
    • Tax Code. Select a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
    • Amount. Specify the cost of the line item.
  7. Click Add Line Item to add additional line items, as necessary.
  8. Once you are done adding line items, do one of the following:
    • To add subcontractor SOV line items on behalf or your subcontractor, click Create and continue to the Subcontractor SOV subtab (see steps below) to fill in the Subcontractor SOV values.
      OR
    • To invite your invoice contacts to create the Subcontractor SOV line items (see Create Invoice Contacts), click Create and Email to send the Invoice Contacts and email notifying them they can add their subcontractor line items to the Subcontractor SOV tab. See Review a Commitment's Subcontractor Schedule of Values.

Update the Subcontractor SOV (SSOV)

Perform these steps in the purchase order or subcontract:

  1. Click the Subcontractor SOV tab.
  2. Click Edit. 
    Note: In order to edit the SOV line items, the commitment cannot have subcontractor invoices. 
  3. Click +Add Line Item to add a detailed breakdown for each line item.
  4. When you are done adding line items, click Submit.
    Note: You are unable to click Submit if the Remaining To Allocate value does not equal zero. The Remaining To Allocate amount shows the difference between the sum of our detail line items and the general schedule of values line item.
    Note: The General sub tab and the Subcontractor SOV sub tab each have their own status field. In order to create subcontractor invoices for that commitment, both tabs must have a status of 'Approved.'

 

If you would like to learn more about Procore’s commitments software and how it can help your business, please visit our construction financials tool product page here.